Looking forward, the worst of Hurricane Sandy seems to be behind us now, and both the NASDAQ and NYSE have announced they are intending to resume trading on Wednesday October 31.
On the fundamental front, traders found no inspiration to move neither Euros nor US Dollars, and focus now shifts to the EU Finance Meeting later in Europe, with headlines on a 2-year extension and prospects for the next tranche of aid to Greece as a risk event worth noting. Meanwhile, expectations to define timing of a possible Spanish bailout stay very low.
Jamie Coleman, Founder at Forexlive, notes: "The single currency attempted to break the near-term downtrend at midday in New York after strong performance from European equities and a well -received Italian auction. We could not close the deal, however, and we've drifted back within the established 1.2885/1.2970 range. US markets will be open tomorrow, though perhaps thinly-staffed, so we should be getting closer to normal, with any luck."
FXWW Founder, Sean Lee, notes EUR is starting to look bullish: "This time last year, EUR/USD had a technically bearish event when the 50-day MA crossed the 200-day MA and the pair had a bearish trend for 12 months. Now we’ve had a bullish cross and this could have a significant impact if macro funds decide to exit long-term short positions."
Analysts at Commerzbank, Lutz Karpowitz and Peter Kinsella, note EUR/USD remains in wait and see mode, although they predict "the lower end of the trading range in EUR-USD is likely to be the weaker one in the short term.”